South Korea extends fuel tax cut through December
South Korea plans to maintain reduced fuel taxes through the end of December to help citizens manage costs amid volatile global oil markets. The government will lower gasoline tax cuts from 10 percent to 7 percent, while reducing diesel and liquefied petroleum gas reductions from 15 percent to 10 percent, under the extension announced on Wednesday by the finance ministry. Officials said the decision takes into account unpredictable international energy prices and their effects on domestic consumers.
The nation launched the tax relief program in November 2021, when energy costs began rising, and has adjusted the rates 17 times based on market conditions. South Korea imports most of its energy supply and faces significant exposure to price fluctuations that can trigger inflation at home. The revised rates represent the 18th continuation of the program designed to ease financial pressure on households and businesses.
